Buying your first home is an exciting milestone, but for many, the rising property prices can make it seem out of reach. Fortunately, the government offers several grants and schemes to ease the financial burden, helping first-time buyers and single parents achieve homeownership with lower upfront costs.
In this guide, we’ll break down the key government grants available in 2025, explaining their benefits, eligibility criteria, and how to apply. By the end, you’ll have a clear strategy to take advantage of these schemes and move into your dream home sooner.
Government Grants for Homebuyers
The government offers a range of financial support programs to help eligible individuals enter the property market. These grants and schemes aim to reduce upfront costs, lower loan repayments, and make homeownership more affordable. We’re now going to look at each of these more closely.
First Home Owner Grant (FHOG) – $10,000 Boost for New Homes
The First Home Owner Grant is a one-time $10,000 grant available for eligible first-home buyers purchasing or building a new property. This initiative encourages buyers to invest in newly built homes, helping to stimulate the housing market and increase supply.
Eligibility Criteria:
- Must be purchasing or building a brand-new home.
- The property must be valued at $750,000 or less.
- Applicants must be Australian citizens or permanent residents.
- First-time Australian homeowner only.
How to Apply:
Applications can be made through your home loan provider or directly via Revenue NSW. Processing times may vary, so ensure all required documents are submitted correctly.
First Home Buyer Assistance Scheme (FHBAS) – Slash Your Stamp Duty
Stamp duty is one of the biggest upfront costs when buying a home, often adding tens of thousands of dollars to the purchase price. The First Home Buyer Assistance Scheme helps reduce or even eliminate stamp duty for eligible first-time buyers.
Stamp Duty Concessions Under FHBAS
| Property Value | Stamp Duty Concession |
| Up to $800,000 | Full exemption – Pay $0 stamp duty |
| $800,000 – $1,000,000 | Discounted stamp duty based on a sliding scale |
| Above $1,000,000 | Full stamp duty applies |
Who Can Apply?
- Must be buying a new or existing home.
- Must be an Australian citizen or permanent resident.
- Property price should be within the eligibility limits.
This scheme can save first-home buyers up to $30,000, significantly reducing upfront costs.
First Home Guarantee (FHBG) – Buy with Just a 5% Deposit
Saving for a down payment is a major hurdle for first-time homebuyers. The First Home Guarantee Scheme previously known as the First Home Loan Deposit Scheme, allows eligible buyers to purchase a home with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).
Key Benefits:
- Save thousands of dollars in LMI costs.
- Available for new and existing homes.
- Open to single buyers earning up to $125,000 or couples earning up to $200,000.
Important Note:
This scheme is limited to 35,000 places per year, so early application is crucial.
Family Home Guarantee (FHG) – Helping Single Parents Buy a Home
The Family home guarantee scheme is specifically designed to assist single parents in purchasing a home with as little as a 2% deposit. This makes homeownership significantly more accessible for single parents who may struggle to save for a large deposit.
Who Can Apply?
- Must be a single parent and have at least one dependent child.
- Open to both first-home buyers and previous homeowners who do not currently own property.
- Must earn under $125,000 per year.
- Available for new and existing homes.
How It Works?
- The government guarantees up to 18% of the loan, reducing the need for a 20% deposit.
- This allows single parents to buy a home with just a 2% deposit.
- No need to pay expensive Lenders Mortgage Insurance.
Example:
If you’re purchasing a $600,000 home, instead of needing a $120,000 deposit (20%), you only need $12,000 (2%) under this scheme!
Limited Spots Available
This scheme has a fixed number of places each year, so it’s best to apply as early as possible.
Help to Buy Scheme – Shared Equity for Affordable Homeownership
The Help to Buy Scheme represents one of the most innovative approaches to homeownership assistance. This equity contribution scheme allows eligible homebuyers to purchase a property with a much Buy a house with Low deposit and mortgage than traditionally required.
Under this program, the government contributes up to:
- 40% of the purchase price for new home
- 30% of the purchase price for existing home
This means you can enter the property market with as little as a 2% deposit, dramatically reducing both your upfront costs and ongoing mortgage repayments.
Eligibility Requirements:
- Annual income cap of $90,000 for individuals or $120,000 for couples
- Meet minimum deposit requirements (typically 2-5%)
Step-by-Step Guide to Securing a Grant
If you’re ready to apply for government assistance, follow these steps to maximise your chances of approval:
1. Research & Compare Grants
Determine which grants you qualify for and how they can benefit you.
2. Check Eligibility
Carefully review the requirements to ensure you meet all criteria.
3. Gather Documents
Prepare necessary paperwork, including proof of income, residency, and property details.
4. Apply Through the Right Channels
Some grants are processed via Revenue NSW while others are handled through lenders.
5. Seek Professional Advice
Consulting a mortgage broker can help you navigate the application process smoothly.
Ready to Find Your Dream Home? Let SREG Guide You!
At SREG, we’re more than just real estate agents in Sydney; we’re your partners in navigating the complexities of the property market. With our expertise, we’ll help you unlock the doors to your ideal home, ensuring you maximise every available grant and scheme.
Don’t wait! Contact SREG today and let’s turn your homeownership dreams into reality.
Make 2025 the Year You Buy Your Home!
